DNeX unit bags 3-year NSW contract extension

By S BIRRUNTHA / Pic By MUHD AMIN NAHARUL

DAGANG NeXchange Bhd (DNeX) yesterday announced that its unit has been granted an extension contract for a period of three years to operate the National Single Window (NSW) for trade facilitation.

The company, in a Bursa Malaysia filing, said its wholly-owned subsidiary, Dagang Net Technologies Sdn Bhd, has received a letter from the government on the contract extension, in which the NSW will be from Sept 1, 2021 until Aug 31, 2024.

It said the contract extension will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholding of the company, as it does not involve issuance of new shares by the company.

“There is also no effect on the gearing of DNeX Group resulting from the contract extension as the contract will be funded via internally generated funds.

“Barring any unforeseen circumstances, the contract extension is expected to contribute positively towards the earnings, earnings per share and net assets per share of DNeX Group during the contract extension period,” it said in a statement.

Under the contract extension, DNeX said it will continue to provide six core e-services of the NSW for trade facilitation — namely eDeclare, eManifest, ePCO, ePermit, ePermitSTA and ePayment — by providing the trading community with connectivity to the Royal Malaysia Customs Department and relevant agencies for import and export document processing.

The company will also be providing services for the Asean Single Window, an initiative aimed at expediting cargo clearance and Asean economic integration by enabling the electronic exchange of border trade-related documents among members.

DNeX through Dagang Net has been the NSW operator for trade facilitation since its launch in 2009. The company has, thus far, received a couple of extensions to this concession for two years each starting from 2016.

“The risks associated with the contract extension include, but are not limited to execution risks, such as availability of skilled manpower and equipment, changes in prices of equipment and changes in economic and regulatory conditions.

“Notwithstanding this, Dagang Net has throughout the years established its track records and expertise to undertake such contracts and will closely mitigate the risks by taking the necessary steps,” the company added.

At close yesterday, shares of DNeX closed two sen or 2.25% lower at 87 sen, valuing the company at RM1.88 billion. DNeX’s shares continue to be actively traded on the stock exchange with 226.75 million shares done yesterday.